Sell Your New York Lottery Payments for a Lump Sum

How New York Lottery Payments Work

If you won a New York Lotto, Mega Millions, or Powerball jackpot and chose the annuity option, you’re receiving annual installment payments managed by the New York State Gaming Commission (formerly the Division of the Lottery). Powerball and Mega Millions annuities pay 30 graduated installments increasing by 5% each year, while New York Lotto annuities are paid in 26 annual payments. These payments are guaranteed by investments in U.S. government securities.

New York is one of the highest-participation lottery states in the country. But what looked like a good decision at the time of the win may not align with your current financial situation. Whether you need a lump sum to invest, pay down debt, buy property, or cover major expenses, selling your remaining lottery payments gives you access to that capital now.

New York’s Lottery Assignment Law: Tax Law § 1613(d)

New York lottery prizes paid in installments may be voluntarily assigned via order of the Supreme Court under McKinney’s Tax Law § 1613(d). Despite the name, New York’s Supreme Court is the trial-level court of general jurisdiction, not an appellate court. This is a common point of confusion for New York lottery winners. Key provisions include:

• WSJ prime + 10% discount rate cap: The purchase price must represent the present value of the assigned payments, discounted at an annual rate not exceeding 10 percentage points over the Wall Street Journal prime rate published on the business day prior to contract execution. This floating cap protects sellers from excessive discounts.
• Seller’s sworn affidavit (6 elements): Sound mind, independent legal and financial/tax advice, understanding of lost payments, one-page 14-point boldface disclosure statement with payment details and fees, and confirmation of the 3-business-day cancellation right.
• Buyer (assignee) affidavit required: New York requires the buyer to submit a sworn affidavit covering: a summary of contacts with the winner, any lawsuits or claims from lottery winners, good standing certification, business history, nature of business, and privacy/non-harassment policies followed in New York.
• 30-day pre-hearing notice: Written notice to the Division’s counsel at least 30 days before any court hearing, one of the longest lead times among lottery-transfer states.
• 30-day certified copy deadline: The certified court order must reach the Division at least 30 days before the assigned payment date.
• Joint assignment for co-owned prizes: If husband and wife are co-owners, the assignment must be made jointly.
• Maximum 3 assignees per payment at any one time.

Payments subject to child support, non-wage garnishment, criminal restitution, or state-agency debts are excluded from assignment and offset first against remaining payments to the winner.

Current Maximum Discount Rate for New York Lottery Transfers

Under Tax Law § 1613(d)(1)(ii), the discount rate on a New York lottery payment assignment cannot exceed 10 percentage points over the Wall Street Journal prime rate on the business day prior to contract execution. The WSJ prime rate tracks the bank prime loan rate published in the Federal Reserve H.15 Statistical Release.

As of March 19, 2026, the prime rate is 6.75%, which means the current maximum allowable discount rate for New York lottery payment transfers is 16.75% APR. This floating cap adjusts with market conditions and protects New York lottery winners from excessive discounting.

This rate is updated automatically from Federal Reserve data. The actual cap applicable to your transfer depends on the WSJ prime rate on the business day before your contract is signed.

Tax Implications for New York Lottery Winners

New York is one of the highest-taxed states for lottery winners. State tax on lottery winnings reaches 10.9% at the top marginal rate. New York City residents face an additional 3.876% city tax, and Yonkers residents pay an additional 1.477% surcharge. Combined with the federal top rate of 37% (24% withheld at payment), a NYC lottery winner could face a combined effective tax rate exceeding 50%.

This high tax burden makes lump sum planning especially important for New York winners. Receiving a large lump sum in a single tax year may push you into the highest brackets at both the federal and state level. Consult a tax professional to model your specific scenario, and use our lottery calculator to estimate your after-tax proceeds based on New York’s rates. Compare your results to winners in no-tax states like Florida or Texas.

How CSF Buys New York Lottery Payments

Catalina Structured Funding handles the New York Supreme Court process and the detailed notice requirements on your behalf:

1. Free quote: Call (800) 317-3769 or request a quote online. We calculate your offer within the WSJ prime + 10% discount rate cap.
2. Accept the offer: Review the terms at your own pace. You’ll receive independent legal counsel and financial/tax advice before signing. You have a 3-business-day cancellation right.
3. Buyer affidavit: CSF prepares and submits the required assignee affidavit disclosing our business history, privacy policies, and good standing, transparency required by New York law.
4. Court approval: CSF files the petition with the Supreme Court and provides the required 30-day advance notice to the Division’s counsel. The typical timeline is 30–60 days.
5. Get your lump sum: After court approval and the 30-day certified copy process, funds are transferred directly to you. CSF offers cash advances upon signing.

Why New York Lottery Winners Choose CSF

• Transparent pricing: The amount we quote is the amount you receive
• Rate cap compliance: Our offers stay within the WSJ prime + 10% statutory cap, ensuring fair value
• Buyer transparency: We submit the required assignee affidavit disclosing our business history and practices
• Competitive rates for New York Lotto, Mega Millions, and Powerball annuity payments
• Cash advances available upon signing
• Flexible options: Sell some or all of your remaining payments
• Free, no-obligation quotes: call (800) 317-3769 or request a quote online

For official information about New York lottery prize payments, visit the New York Lottery website.